[8 years of trade testing] The roles of the 5 signs are clear, so you won’t get confused! [In-depth explanation of the L sign]

“I can’t master the tools.”
Free from such worries!?
Understand five signs with clear roles and rules.

Continuing from last time, we interviewed trader and sign tool developerLeo. In part 2, Mr. Leo explains the sign tool “L Sign” he developed using actual charts.

What stood out to me in our conversation was thesimplicityof L Sign. Each of the five signs has a clear role: this sign for following trends, that sign for targeting reversals—no confusion in choosing. The trading rules are also clear and simple, like never entering against the directional bias. Truly asimple is bestsign tool.

In the first video, there’s also aviewer-exclusive gift. If you haven’t watched it yet, check out part 1 and claim the gift.

Five signs with clear roles

The concept of L Sign is anall-in-one, ambitious signthat targets tops, ranges, and trends. Each of the five signs has a distinct role.

• Type I / Type II: Trend-following. These are the prototypes of Mr. Leo’s trading method; the opportunity arises when the MA (moving average) forms a perfect order and aligns with Dow Theory’s directional bias.
• Type III: A sign that targets the early stage of a trend reversal when the major flow breaks.
• Type IV: A sign that aims to catch tops and bottoms.
• Type 0: Strong in ranges; a day-trade-oriented sign that appears about 300 times a year.

The rules are simple as well.If the directional bias is short, buying from below is not allowed. Since Type 0 is weak in trends, it is not to be used in trending markets. For Type III, you enter immediately when the sign appears and hold longer; you can switch between day trading and swing trading depending on the sign.

Proven performance from 8 years of backtesting data

Type III is a sign that appears only about 20–30 times per year. In return, it can capture large moves; with a 130-pip stop, take-profit can sometimes be around 270 pips.In eight years of historical testing, the win rate is about 60–70%.

All L Sign trigger points that actually appeared arefully published on Investment Navi. Rather than relying on feel, you can verify profit ranges and performance from the outcomes of the signals.

At the bottom of the screen, directional bias from the 1-hour to daily timeframe is displayed. Signals when all directions align are highly reliable; ideally, you should place emphasis on aperfect order across the chart timeframes.

What matters is protecting capital and steadily building it

L Sign also includes detailed tools that support trading: zones to guide exits, a Dow tool that shows directional bias at a glance, and a tool that displaysrisk-reward, which is hard to measure on MT4.

The feature Mr. Leo especially wants users to try is theMoney Management Panel. Enter your risk amount and it automatically calculates pips to the stop, loss/profit amounts, and lot size. It helps prevent unexpected losses at entry and protects your capital.

Mr. Leo himself once lost his savings when he started FX. That’s why, especially with pairs like EUR/USD where technical analysis works well, it’s fundamental tokeep operating at 3% of your capital and build up without overreaching.

In the main video, he also explains how each sign appears while viewing the chart screen, and how to use the Money Management Panel. Be sure to watch the full video.